Problem
As most of the COVID-19 safety measures are lifted, many economists expect this will boost growth especially in the retail sector.
You have just joined an investment company and your boss has asked you to take a closer look at some of the retailers in Singapore as potential candidates for investments.
The company selected should be one you are familiar with or any public listed company in which you are able to obtain the latest annual reports.
1. Compute the below six financial ratios over the two latest periods. Using these financial ratios, comment on the business performance and financial position from the viewpoint of a prospective investor. The ratios must be computed using SUSS Formula Sheet. Show all workings. In addition, the financial statements should be included in the appendix, with the numbers used highlighted in yellow.
a. Current ratio.
b. Debt-to-equity.
c. Return on total assets.
d. Profit margin ratio.
e. Any two other ratios that would be relevant in your analysis
2. Conclude whether the company is a good investment option based on the analysis conducted in part (1).